• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

60% probability

During the interview, host Becky Quick mentioned we still have “another five years left to go,” drawing on the roaring '20s analogy, to which the market strategist affirmatively replied, “Yeah, absolutely.”

Yardeni is of the opinion that “there’s room to grow.” However, he harbors two major concerns.

His first worry is the possibility of revisiting the 1970s scenario, characterized by surging oil prices and a persistent "wage-price spiral," leading the U.S. Federal Reserve to hike interest rates. He considers this a geopolitical risk.

The second concern revolves around a possible recurrence of the 1990s "irrational exuberance," which, in Yardeni's view, "looked to be the case" in recent weeks.

Despite these apprehensions, Yardeni maintains a largely optimistic outlook, going so far as to calculate the probabilities of how the remainder of the 2020s might unfold.

“If you asked me to put probabilities on it, I’d say a 60% likelihood that it's going to be the roaring 2020s and then 20% each for the 1970s and the 1990s,” he said.

Don't miss

Overweight this 1 sector?

Although Yardeni is wary of a potential recurrence of the 1970s energy crisis, the evolving dynamics of the energy market may present opportunities for investors.

In particular, he pointed out that oil prices “could very well head up to $100 a barrel if the situation in the Middle East continues to deteriorate.”

He elaborated that in the event of a “direct confrontation between Israel and Iran,” the price of oil could rise to the $100 mark “very rapidly.”

Given his analysis, it's no surprise that Yardeni highlights energy as a key sector for investors.

“... I'd overweight energy,” he said. “I've been recommending that for a while, and it's been a clunker, but now it's working out quite well. And I think there's going to be some profit-taking here.”

What to read next

Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.